The Lemon Fool

I've received a notification informing me that a company closely associated with the CEO of Quarto has acquired another 125k shares bringing his holding up to 36.98% of the issued share capital of the company. The share price has shot up 8.57% today but is still a long way below its price 4 years ago and still showing me a big loss, having bought in 2006. Any views on future prospects? They have gone up a fair bit in the past year but there is still a long way to go before they get back to previous heights.

RNS dated l7 August says: "

Quarto (LSE: QRT) announces that 1010 Printing Limited (a company incorporated in Hong Kong under registration number 1419686), and a company closely associated with the Company's CEO, Mr Chuk Kin Lau, has acquired 10,000 shares of the Company's common stock of US$0.10 each as detailed in the notification below.

Following this transaction, the total shareholding of 1010 Printing Limited becomes 15,179,826 shares (37.12% of the Company's issued share capital).

Mr Lau holds 1,679,743 shares (4.11% of the Company's issued share capital)."

https://www.londonstockexchange.com/new ... g/15101773

What is the ownership level at which a holder must make an offer for the company? I thought it was 30% of share capital but presumably I am wrong about that. In any event, what are the implications of this share build up if not to acquire the company?

I have held Quarto for many years, bought when I used to follow Lord Lee's purchases, since when they have fallen dramatically, long before Covid added to their woes, but they have been picking up recently. My guess is that this Hong Kong Company will make an offer for the company for peanuts just when it is recovering and, aware of the hidden value from which he will benefit, the CEO will, needless to say, not turn it down.

I daresay I am the only lemon holding this company but would appreciate views.

https://www.thetakeoverpanel.org.uk/the ... t=Continue


"When a person or group acquires interests in shares carrying 30% or more of the voting rights of a company, they must make a cash offer to all other shareholders at the highest price paid in the 12 months before the offer was announced (30% of the voting rights of a company is treated by the Code as the level at which effective control is obtained)."

( sorry...do not know about QRT).

I believe it is incorporated in the US (Delaware), not the UK, so the provisions do not apply.

My thanks for both replies.

So dak what the US provisions are, then?

A quick search would suggest that there is no equivalent in either US Federal or Delaware law.
There are disclosure requirements, but no mandatory offer limit.

murraypaul wrote:A quick search would suggest that there is no equivalent in either US Federal or Delaware law.
There are disclosure requirements, but no mandatory offer limit.

That's was my view (*) as well based on a very quick read of part of ....

https://www.google.com/url?sa=t&source= ... 7Ak91yYACN

The ins & outs of the differences would need further study if one was so inclined.

(*) TBH...I wouldn't have known the significant differences between UK & US takeover rules before looking. I see there are technical papers on takeovers of companies in China....let's leave that one for a rainy day!

Thanks again. So potential buyers can just go on building their stake and pick their moment to pounce. The suspense will kill me. ,